2017/182018/192019/202020/212021/222022/232023/24
Income Tax Relief30%30%30%30%30%30%30%
Minimum investmentN/AN/AN/AN/AN/AN/AN/A
Maximum investment£1m£1m£2m*£2m*£2m*£2m*£2m*

* The extension of the annual limit for investment to £2 million only applies if the additional investment over and above £1 million is made into a “Knowledge Intensive” company.

  • EIS relief is capped at the lower of 30% of the investment or the individual’s income tax liability.
  • The relief applies to cash subscriptions of newly issued ordinary shares in unquoted UK companies that satisfy the HMRC criteria.
  • Additional reliefs may apply such as the ability to carry back the investment to a prior tax year or deferral relief for capital gains and, after two years, 100% business property relief for Inheritance Tax.
  • Relief may be withdrawn if the shares are sold within a certain period.
  • Partial relief for the loss on the disposal of EIS shares can be relieved against income or capital gains.
  • The shares may be sold free of capital gains tax, subject to certain conditions.
  • If you are deemed to be connected with a company, EIS relief may not be available or could be withdrawn.
  • Such investments should be discussed with an independent financial adviser who will consider the risk of the particular investment.
  • Professional tax advice should be sought before making this investment.